Financial statement of a company

The research, planning and analysis of the financial statement of a company have a lot of benefit on the company. With a well organized plan and analysis, the company is able to keep track of its debtors and the analysis of the current ratio…

Introduction

When this is done, the company has the knowledge of whether it has the liquidity to settle any debts that are due. The financial statements are also important in determining the costs of productions and the selling rates. When this is done, then the company is able to determine the profit margins that it makes. This helps develop the land increase and the bottom line. The analysis of financial statements is also important in keeping track of the inventory. This is very important in knowing if you have enough inventories that can be used to meet all the sales that are projected. Knowing the total liabilities that are in relation to the total equity of the business is very important (Robinson, 2009). This is known as the debt to equity ratio and is very important to each and every business. With a well planned and organized financial statement, an analysis can be done to know the debt-to-equity ratio. This is one of the great benefits of financial statements. Last but not least, a well organized financial statement has the ability to help an organization keep track of its improvements over time. When financial statements are compared overtime, it can be used to spot any changes that affect the organization both positively and negatively. A financial statement is one of the most important tools that organizations and small businesses use in order to realize significant changes that are in their organization. ...

Related papers

The preparation of financial statement analysis requires financial ratios, accounting data from financial statements. The ratio assists in measuring strengths and weaknesses of the firm and allows trends and comparisons with other firms within the industry to be identified. It also covers the areas of liquidity, operating profits, financing and stockholders' return on investments (Collier, Grai,…

The paper will explore why accurate financial statements are important for outside business interests Customers Customers are external parties that deal with the company by purchasing its products and services and are therefore interested in the financial statement of a company that needs to be accurate. Customers would be interested in the accurate financial statement for them to be able to know…

Income statement would include all the list of expenses such as rent, utilities, car payments, groceries, fuel, entertainment expenses, etc. The person can also analyze the unnecessary expenditures too. It would further assist in organizing the lifestyle of a person and facilitate in ensuring that the bills are paid on time. It would also help in keeping track of the money and check the habit of…

The company aims at creating a great guest love hotel with over 6,76000 hundred rooms in approximate 4600 hotels in one hundreds countries (Intercontinental Hotel Group, 2013). Additionally, the directors report indicates that Intercontinental Hotel and Group provide employment to more than345, 000 people globally for instance, in 2011 the company provided employment opportunities to more than…

Since the perpetrators of financial statement fraud may be outsiders who collaborate with certain account department employees, it is imperative for concerned organizations to carry out surprise financial audits regularly to detect and prevent any potential incidences of financial statement fraud. This paper focuses on revenue recognition fraud by examining the background, real-time incidence,…

The company manufactures and distributes different brands specializing in consumer products including hygiene, nutritional and personal care products. Further, its portfolio has items such as Lipton, Knorr, Magnum, Hellmann’s, Lux, Dove, Omo and Axe. Notably, the company product retails in more than 170 countries around the globe.

Didn't find a paper?

Contact us via Live Chat, call us at +15186314539or send an email to support@studentshare.net